Aster Buyback Sparks Recovery Hopes for ASTER Amid Neutral Market Signals

• Key Point 1: Latest Buyback Details – Aster’s initiative allocates 80% of fees to repurchase tokens, enhancing deflationary mechanics for long-term holders.

• Key Point 2: Market Reaction – Despite the announcement, trading volume remains subdued, with spot markets showing neutral sentiment and no immediate price recovery.

• Key Point 3: Technical Indicators – On Balance Volume (OBV) and Relative Strength Index (RSI) point to ongoing bearish pressure, though derivatives traders hold 77% long positions.

Discover how Aster’s new token buyback impacts ASTER price in 2025. Explore market analysis, technical signals, and recovery potential. Stay informed on crypto trends—read now for expert insights!

What is the ASTER Token Buyback Program and How Does It Work?

ASTER token buyback refers to Aster’s strategy to repurchase its native tokens from the market using a portion of platform-generated fees, aiming to decrease supply and potentially bolster value. The YZi Labs-backed perpetual decentralized exchange (DEX) launched its latest round on October 29, 2025, committing up to 80% of trading fees for this purpose. This follows an initial buyback on October 10, 2025, which acquired 100 million ASTER tokens, though external market volatility like a $19 billion flash crash overshadowed its effects.

The program operates by channeling fees from perpetual trading activities directly into token repurchases, creating a deflationary pressure that benefits holders by reducing available supply. According to platform updates shared on X, this mechanism is designed to align incentives between users and the ecosystem, fostering sustainability. However, as with many crypto initiatives, its success hinges on broader adoption and market conditions.

Why Did Aster Announce Another Buyback Round So Soon?

Aster’s decision to initiate a second buyback stems from its commitment to ecosystem health amid fluctuating crypto markets. The first round, executed two weeks prior, demonstrated the protocol’s ability to remove significant token volume—100 million ASTER—despite coinciding with a severe liquidation event totaling over $19 billion across the sector. Data from on-chain analytics, such as those provided by Arkham, indicate that such moves aim to counteract selling pressure and stabilize prices during downturns.

Experts in decentralized finance note that frequent buybacks can signal confidence in the project’s fundamentals. For instance, a DeFi analyst from a reputable research firm stated, “Buyback programs like Aster’s are essential for maintaining token utility in perpetual DEX environments, where liquidity and fees drive growth.” Supporting statistics show Aster’s trading volume holding steady at levels seen pre-buyback, with fees generating potential for substantial repurchases if momentum picks up. Short sentences highlight the process: Fees accumulate daily. Up to 80% fund buybacks. Tokens are then secured in a designated address, preventing immediate resale.

Source: X

The announcement received mixed feedback online. One community member on X remarked, “Maybe they write wrong, This is sellback, not a buyback,” expressing concerns over token storage rather than burning, which could lead to future sell-offs. This reflects broader skepticism in crypto circles about buyback efficacy without permanent supply reduction.

What’s Next for ASTER Price After the Buyback News?

Following the October 29, 2025, announcement, ASTER’s price experienced a modest decline of about 2.5%, trading near $0.90 after a nearly 60% drop from its record high of $2.40. Broader market caution ahead of the FOMC meeting contributed to this dip, but the buyback’s potential as a recovery catalyst remains unproven. Technical analysis from TradingView reveals attempts to establish $1 as a support level, yet indicators suggest persistent bearish sentiment.

On-chain data from Arkham illustrates a neutral supply-demand balance, with exchange inflows stabilizing after earlier spikes in late August and early October. This sideways movement implies limited selling pressure but also subdued buying interest, creating a calm phase that could precede volatility. Derivatives data from Coinglass shows leveraged traders maintaining optimism, with long positions at 77%—up notably in the past five days—indicating bets on an eventual rebound, tempered only slightly by recent derisking.

Source: ASTER/USDT, TradingView

Key technical metrics reinforce caution: The On Balance Volume (OBV) has declined and flattened, showing no robust accumulation to support a rally. Meanwhile, the 12-hour RSI hovers below its average since October 10, 2025, underscoring short-sellers’ dominance. If the buyback gains traction and spot volume increases, a push toward $1 could materialize, but current data points to consolidation rather than breakout.

Source: Arkham

In the derivatives market, the slight trim in longs—down 1% in the last 24 hours—reflects prudent risk management ahead of macroeconomic events. Yet, the overall bullish tilt among leveraged players suggests underlying faith in Aster’s model. Spot markets, however, lag, with on-chain exchange flows indicating neutrality that could shift if buyback executions demonstrate real impact.

Source: Coinglass

This divergence between spot and derivatives highlights a market in waiting mode. If trading fees surge post-announcement, the buyback could accelerate, drawing in spot buyers and aligning sentiments for a sustainable uptrend.

Frequently Asked Questions

What Impact Could the ASTER Token Buyback Have on Price in the Short Term?

The ASTER token buyback may provide mild support by reducing supply, but short-term price effects are limited without increased trading volume. As of late October 2025, neutral on-chain flows and bearish technicals like low OBV suggest consolidation around $0.90-$1, pending broader market recovery.

Is Aster’s Buyback Program Similar to Other Crypto Deflationary Mechanisms?

Aster’s approach, using 80% of fees for token repurchases, mirrors deflationary tactics in projects like Binance Coin’s burns, promoting scarcity. It’s tailored for perpetual DEX users, enhancing long-term value through fee reinvestment, though effectiveness depends on adoption and avoiding sell-off risks from stored tokens.

Key Takeaways

• Buyback Momentum: Allocating 80% of fees to repurchases signals Aster’s focus on supply reduction, potentially aiding recovery if spot activity rises.
• Market Sentiment: Neutral on-chain data from Arkham and bullish derivatives (77% longs per Coinglass) indicate cautious optimism amid FOMC uncertainties.
• Technical Outlook: Monitor RSI and OBV for reversal signs; a break above $1 could confirm buyback as a catalyst for ASTER’s rebound.

Conclusion

Aster’s latest token buyback program underscores proactive efforts to navigate crypto volatility, integrating secondary mechanics like fee allocation to sustain the perpetual DEX ecosystem. While initial reactions remain muted—with ASTER price hovering near $0.90 and technicals bearish—the initiative could catalyze recovery as market sentiment improves. Investors should watch on-chain flows and trading volume closely; positioning now may yield benefits in a strengthening bull cycle ahead.